Amazon to raise seller fees for holidays amid rising costs

NEW YORK –

Amazon is raising charges on third-party sellers again – this time adding a holiday fee for merchants who use the company’s fulfilment services to pack and ship items to customers.

Between Oct. 15 and Jan. 23, sellers will be assessed $0.35 per article sold According to a notice that Amazon sent Tuesday to merchants, it is possible to use Amazon’s fulfillment services in the U.S.A. and Canada.

This is the second major fee increase that online retailer Amazon has imposed on merchants in 2018. The company also added a 5% surcharge for fuel and inflation in April to offset rising gas prices and inflation. It is nearing its highest point in 40 years.

Amazon fulfilment fees are already payable by merchants to use their services. The fee varies depending on the item’s category, size, and weight.

Amazon sent Tuesday’s notice to inform customers that the holiday season brings increased fulfilment and logistic costs due the large volume of shipping. Amazon sent the notice Tuesday. said These cost increases were previously not absorbed by the company. However, seasonal expenses were “reaching all new heights”, it stated. said.

“Our selling partners matter to us greatly, and this decision was not taken lightly,” says the company. said.

CNBC reported the first time about the increase in fees.

Amazon does not make holiday pricing adjustments often. Amazon made holiday pricing adjustments last week. Postal Service said It filed a notice in order to implement a temporary price increase to cover additional handling costs during the holiday period.

But at Amazon, seller fees – and their repeated increases – are a subject of contention since the company controls a vast share of the e-commerce market. Critics claim that Amazon’s excessive fees could lead to merchants being locked out of its marketplace.

“Corporations with monopoly powers tend to raise prices and that’s what’s happening here.” said Stacy Mitchell, Amazon critic and co-director for Institute for Local Self-Reliance (anti-monopoly group). Small businesses are forced to pay more because of Amazon’s online dominance.

Brian Olsavsky was Amazon’s Chief Financial officer last month said A media conference revealed that 57% of total units were sold by third-party vendors sold Amazon sales during the three-month period ended June 30, were the highest ever recorded in Amazon’s history.

The second quarter earnings report of the Seattle-based company also revealed that Amazon’s total revenue from third-party vendors had increased 13% over the previous year, while its revenue from its own retail business declined by 4.4%.